Spotify’s Whooshkaa Acquisition Attracts New Listeners With Broadcast-to-Podcast Tech
Spotify acquired podcast tech company Whooshkaa back in 2021 and just announced the integration of its “Broadcast-to-Podcast” automation via Megaphone. The result is a massive technological leap and bridge between media outlets. This combination represents a fundamental shift in the music marketing business since it brings together two channels that have previously been antagonistic. The technology benefits both sides since it allows Spotify to get into the traditional radio audience while allowing radio broadcasters to reach new audiences on Spotify.
Spotify’s Appeal to Radio’s Established Audiences
For more than a century, radio transmission has been a fixture in the entertainment business. Despite the advent of digital media, radio remains popular with audiences, with more than half of consumers (53%) listening to radio weekly, compared to 32% who listen to podcasts (MIDiA Research, Q4 2022). The technology underpinning Spotify’s broadcast-to-podcast capability enables radio broadcasters to make the digital move. Spotify’s core demographic of 16-34-year-olds is a younger group that radio has struggled to attract. Spotify can boost its credibility in the news genre, which is typically a top podcast category among listeners, by including radio coverage on its platform.
While Spotify’s audience is younger, its latest podcast initiatives, such as the famous Emma Chamberlain program, have been largely focused on Gen Z. Because the largest podcast video audience is 25-44-year-olds, radio broadcasters may struggle to attract younger viewers that rely on video. As a result, radio material may clash with Spotify’s TikTok-style home page, which is heavy on video. Spotify must have a sufficient amount of content that appeals to its older audience, while the technology underpinning broadcast-to-podcast allows radio to get into Spotify’s younger audience.
Radio’s Appeal to Spotify’s Younger Audiences
The radio business’s main audience is aging, and the industry must find a means to appeal to younger listeners. The broadcast-to-podcast functionality enables radio stations to migrate to streaming by leveraging existing content rather than creating new programming expressly for podcasts. Although many radio networks, such as Global Radio and the BBC, have their own applications, reaching a younger population on platforms they already use, such as Spotify, may be simpler.
What happens to Advertising Revenue?
Because of the collaboration between Spotify and radio stations, advertising may now reach a broader audience using this technology. The economic crisis has affected audio advertising, and businesses are seeking a more assured return on ad spots, which may be more easily delivered through the audience of an established network. This technology will be integrated into Spotify’s podcast ad tech and hosting platform, Megaphone, allowing publishers to plug a URL for a live broadcast stream to instantly produce a podcast. The publisher might introduce fresh commercials in lieu of those that were shown during the live broadcast.
When compared to independent producers, radio broadcasters provide brand awareness and a better degree of confidence to marketers. The inclusion of the technology on Megaphone broadens Spotify’s attractiveness to potential marketers who have not yet invested in the podcast sector.
What happens next?
The music marketing industry is rapidly developing, and the marriage of Spotify and radio represents a whole new dynamic for advertisers, marketers, and the industry that holds the whole thing together. The broadcast-to-podcast technology exemplifies the power of innovation in bridging the gap between traditional and digital media. A win-win situation, Spotify can boost its credibility in the news genre, which is typically a top podcast category among listeners, by including radio coverage on its platform. Simultaneously, radio broadcasters may appeal to younger listeners that rely significantly on streaming services such as Spotify. A brave new world for broadcasting, but with this type of centralization in the industry, what will happen to the rest of the platforms fighting for the same audiences?
If you want to stay up-to-date on the latest news and trends in the music industry, the MPT Agency Blog is an excellent resource to explore. And for the latest music developments, be sure to follow MusicPromoToday.
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